Sri Lanka to drop mansion tax
ECONOMYNEXT – Sri Lanka is to abolish a so-called ‘mansion tax’ proposed in a budget in 2015 which would have been charged on large houses costing over 150 million rupees to build.
The Finance Ministry sought approval from the Cabinet of Ministers to abolish the tax as there were practical difficulties in implementing the tax.
There have been requests to exempt older buildings from the tax.
There was also criticism of the tax as being political and was targeting individuals connected to the Rajapaksa regime who built large houses.
The tax went against the principle of simplifying the tax system and reducing the overall number of taxes in the country which was promised by the current administration as a way to be boost growth.